Stay or Pay? States are Saying "Nay": What Employers Should Know About Emerging Restrictions on Training Repayment Agreements
States across the country are tightening restrictions on "stay-or-pay" agreements that require employees to repay training costs or related expenses if they leave before a specified period of employment. Historically, employers have relied on these agreements to safeguard training investments; however, they are now increasingly susceptible to state-level restrictions and legal challenges.
Retention Bonuses Are Not Wages Under Massachusetts Law
In a victory for employers, the Massachusetts Supreme Judicial Court (SJC) recently held that retention bonuses are not considered wages under the Massachusetts Wage Act and are not required to be paid to employees on the same timeline as other forms of compensation under the Wage Act.
A Settlement That Remains Unsettled: Title IX Challenges to House v. NCAA NIL Settlement Surge On
In June, Judge Claudia Wilken of the United States District Court for the Northern District of California approved an unprecedented $2.8 billion settlement in the class action antitrust lawsuitHouse v. NCAA,a major development in NCAA antitrust litigation and ongoing debates about student-athlete compensation.
Attorney Spotlight
John Harras: The new year is rapidly approaching! With it comes new employee benefits regulation! On January 1, 2026, employers will be subject to new, mandatory Roth catch-up contribution rules. Under these new rules, employers must designate age 50+ catch-up contributions to retirement plans as Roth (after-tax) contributions for employees participating in the plan with annual FICA wages greater than $150,000 (as adjusted for inflation) in the prior year. Such employees will no longer have the option to remit catch-up contributions on a pre-tax basis. To implement these new rules, employers must monitor their employees' FICA compensation to determine whether their employees are subject to these mandatory Roth designation rules. Employers must also ensure that their retirement plan provides a Roth contribution option to employees, lest their employees earning $150,000+ annually will be barred from availing themselves of any catch-up contributions—a circumstance that could sour employer-employee relations. Absent compliance with these new rules, the retirement plan contributions of employees earning $150,000+ annually will be limited to the normal pre-tax/Roth contribution limit, which, for 2026, is $24,500.
In Case You Missed It
Year-End Deadlines and Dates for Employee Benefit Plans
The end of 2025 brings two important deadlines and dates for employers that sponsor 401(k) plans, 403(b) plans, governmental 457(b) plans, and group health plans.
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About the Labor and Employment Group
The national, 40-person Labor and Employment team at Venable provides guidance and support across the full spectrum of workplace dynamics – helping employers control costs, avoid disputes, and defend themselves when litigation arises. Allison Gotfried, editor of this newsletter, invites you to share the content with your colleagues and reach out with any questions.